Full Press Release Details
| CONTACT | ||
| DR. REDDY'S LABORATORIES LTD. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India. | Investor relationS | Media relationS |
| AMIT AGARWAL amita@drreddys.com | USHA IYER ushaiyer@drreddys.com |
Q3 & 9M FY22 Financial Results
Hyderabad, India, January 28, 2022: Dr.
Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial
results for the quarter and the nine months ended December 31, 2021. The information mentioned in this release is on the basis
of consolidated financial statements under International Financial Reporting Standards (IFRS).
| Q3 Performance Summary | 9M Performance Summary | |
| Rs. 5,320 Cr Revenue* [Up: 8% YoY; Down: 8% QoQ] 53.8% Gross Margin [Q3 FY21: 53.8%; Q2 FY22: 53.4%] Rs.1,541 Cr SGNA expenses [Up: 7% YoY; Down: 3% QoQ] Rs. 416 Cr R&D expenses [7.8% of Revenues] Rs. 1,266 Cr EBITDA* [23.8% of Revenues; Up: 7% YoY; Down: 19% QoQ] Rs. 971 Cr Profit before Tax* [Up: 242% YoY; Down: 23% QoQ] Rs. 707 Cr Profit after Tax* [Up: 3468% YoY; Down: 29% QoQ] | Rs. 16,002 Cr Revenue [Up: 12% YoY] 53.2% Gross Margin [9M FY21: 54.6%] Rs. 4,641 Cr SGNA expenses [Up: 15% YoY] Rs. 1,316 Cr R&D expenses [8.2% of Revenues] Rs. 3,842 Cr EBITDA [24.0% of Revenues; Up: 6% YoY] Rs. 2,982 Cr Profit before Tax [Up: 47% YoY] Rs. 2,269 Cr Profit after Tax [Up: 67% YoY] |
* QoQ: Growth impacted due to higher covid
related sales and PP outlicencing deals in Q2 FY 22
Commenting on the results, Co-chairman &
MD, G V Prasad said "We delivered a steady performance in Q3 with healthy EBITDA and strong cash generation, while continuing
to invest in building a pipeline of products across businesses. I am pleased that our early adoption and consistency in furthering
our sustainability agenda have been recognised with prestigious awards in the last few months. ESG will remain a key focus area
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q3 FY22 | Q3 FY21 | YoY | Q2 FY22 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr % | ||||||||||||||||||||||||
| Revenues | 715 | 53,197 | 663 | 49,296 | 8 | 775 | 57,632 | (8 | ) | |||||||||||||||||||||||
| Cost of Revenues | 330 | 24,585 | 306 | 22,758 | 8 | 361 | 26,846 | (8 | ) | |||||||||||||||||||||||
| Gross Profit | 385 | 28,612 | 357 | 26,538 | 8 | 414 | 30,786 | (7 | ) | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 207 | 15,411 | 193 | 14,387 | 7 | 214 | 15,951 | (3 | ) | |||||||||||||||||||||||
| Research and Development expenses | 56 | 4,159 | 55 | 4,108 | 1 | 60 | 4,463 | (7 | ) | |||||||||||||||||||||||
| Impairment of non-current assets | 1 | 47 | 80 | 5,972 | (99 | ) | - | - | - | |||||||||||||||||||||||
| Other operating income | (3 | ) | (240 | ) | (2 | ) | (128 | ) | 88 | (23 | ) | (1743 | ) | (86 | ) | |||||||||||||||||
| Results from operating activities | 124 | 9,235 | 30 | 2,199 | 320 | 163 | 12,115 | (24 | ) | |||||||||||||||||||||||
| Net finance income | (4 | ) | (289 | ) | (7 | ) | (493 | ) | (41 | ) | (4 | ) | (319 | ) | (9 | ) | ||||||||||||||||
| Share of profit of equity accounted investees | (2 | ) | (185 | ) | (2 | ) | (151 | ) | 23 | (3 | ) | (247 | ) | (25 | ) | |||||||||||||||||
| Profit before Income Tax | 131 | 9,709 | 38 | 2,843 | 242 | 170 | 12,681 | (23 | ) | |||||||||||||||||||||||
| Income Tax | 36 | 2,644 | 36 | 2645 | (0 | ) | 37 | 2,761 | (4 | ) | ||||||||||||||||||||||
| Profit for the period | 95 | 7,065 | 3 | 198 | 3468 | 133 | 9,920 | (29 | ) | |||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.57 | 42.48 | 0.02 | 1.19 | 3480 | 0.80 | 59.65 | (29 | ) |
| As % to revenues | Q3 FY22 | Q3 FY21 | Q2 FY22 | |||||||||
| Gross Profit | 53.8 | 53.8 | 53.4 | |||||||||
| SG&A | 29.0 | 29.2 | 27.7 | |||||||||
| R&D | 7.8 | 8.3 | 7.7 | |||||||||
| EBITDA | 23.8 | 24.0 | 27.0 | |||||||||
| PBT | 18.3 | 5.8 | 22.0 | |||||||||
| PAT | 13.3 | 0.4 | 17.2 |
| Q3 FY22 | Q3 FY21 | Q2 FY22 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 131 | 9,709 | 38 | 2,843 | 170 | 12,681 | ||||||||||||||||||
| Interest income (net)* | (1 | ) | (72 | ) | (2 | ) | (180 | ) | (1 | ) | (93 | ) | ||||||||||||
| Depreciation | 28 | 2,066 | 29 | 2,131 | 28 | 2,075 | ||||||||||||||||||
| Amortization | 12 | 910 | 15 | 1,086 | 12 | 910 | ||||||||||||||||||
| Impairment | 1 | 47 | 80 | 5,972 | - | - | ||||||||||||||||||
| EBITDA | 170 | 12,659 | 159 | 11,851 | 209 | 15,572 |
* Includes income from Investments
Key Balance Sheet Items
| Particulars | As on 31st Dec 2021 | As on 30th Sep 2021 | As on 31st Dec 2020 | |||||||||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | |||||||||||||||||||
| Cash and cash equivalents and current investments | 505 | 37,557 | 379 | 28,188 | 286 | 21,282 | ||||||||||||||||||
| Trade receivables (current & non-current) | 840 | 62,507 | 923 | 68,666 | 718 | 53,408 | ||||||||||||||||||
| Inventories | 668 | 49,675 | 668 | 49,700 | 596 | 44,309 | ||||||||||||||||||
| Property, plant and equipment | 846 | 62,971 | 810 | 60,229 | 756 | 56,263 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 492 | 36,581 | 500 | 37,206 | 552 | 41,062 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 379 | 28,164 | 407 | 30,273 | 275 | 20,443 | ||||||||||||||||||
| Trade payables | 329 | 24,492 | 343 | 25,552 | 310 | 23,072 | ||||||||||||||||||
| Equity | 2,554 | 1,90,016 | 2,472 | 1,83,928 | 2,277 | 1,69,395 |
Revenue Mix by Segment
| Segment | Q3 FY22 | Q3 FY21 | YoY | Q2 FY22 | QoQ | |||||||||||||||
| (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | ||||||||||||||||
| Global Generics | 44,508 | 40,751 | 9 | 47,431 | (6 | ) | ||||||||||||||
| North America | 18,645 | 17,394 | 7 | 18,909 | (1 | ) | ||||||||||||||
| Europe | 4,058 | 4,143 | (2 | ) | 4,135 | (2 | ) | |||||||||||||
| India | 10,266 | 9,591 | 7 | 11,402 | (10 | ) | ||||||||||||||
| Emerging Markets | 11,539 | 9,623 | 20 | 12,985 | (11 | ) | ||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,271 | 7,009 | 4 | 8,372 | (13 | ) | ||||||||||||||
| Proprietary Products & Others | 1,418 | 1,536 | (8 | ) | 1,829 | (22 | ) | |||||||||||||
| Total | 53,197 | 49,296 | 8 | 57,632 | (8 | ) |
We continue to play our role in the fight against
Covid-19 by acting proactively to bring multiple preventive and curative treatment options, including a vaccine. Our major Covid-19
products launched till now include Sputnik V vaccine, Remdesivir, Avigan (Favipiravir), 2-deoxy-D-glucose (2-DG) and Molnupiravir.
We have commercialized all these products in India and few of these products in overseas markets. We have conducted clinical trials
for Sputnik Light and are also developing several other covid related drugs for treatment ranging from mild to severe conditions.
Global Generics (GG)
segment at Rs. 44.5 billion:
America at Rs. 18.6 billion:
Revenues from Europe at Rs. 4.1 billion:
Revenues from India at Rs. 10.3 billion:
Revenues from Emerging Markets at Rs.
11.5 billion. Year-on-year growth of 20%. Sequential decline of 11%:
Pharmaceutical Services
and Active Ingredients (PSAI)
Proprietary Products (PP) & Others
Revenues from PP & Others at Rs.
Income Statement Highlights:
Call Details (06:30 pm IST, 08:00 am EST, Jan 28, 2022)
The management of the Company will host an earnings call to discuss
the Company's financial performance and answer any questions from the participants.
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Transcript: Transcript of the Earnings call will be available
on the Company's website: www.drreddys.com
About Dr. Reddy's: Dr. Reddy's
Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is an integrated pharmaceutical company, committed
to providing affordable and innovative medicines for healthier lives. Through its businesses, Dr. Reddy's offers a portfolio
of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations.
Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology.
Dr. Reddy's operates in markets across the globe. Our major markets include - USA, India, Russia & CIS countries,
and Europe. For more information, log on to: www.drreddys.com
Disclaimer: This press release may
include statements of future expectations and other forward-looking statements that are based on the management's current
views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance or events
to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by
reason of context, the words "may", "will", "should", "expects", "plans", "intends",
"anticipates", "believes", "estimates", "predicts", "potential", or "continue"
and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from
those in such statements due to without limitation, (i) general economic conditions such as performance of financial markets,
credit defaults , currency exchange rates , interest rates , persistency levels and frequency / severity of insured loss events
(ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes
in laws and regulations and in the policies of central banks and/or governments, (v) the impact of acquisitions or reorganization
, including related integration issues, (vi) the susceptibility of our industry and the markets addressed by our, and our customers',
products and services to economic downturns as a result of natural disasters, epidemics, pandemics or other widespread illness,
including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings with the Securities
and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements"
sections of our Annual Report on Form 20-F for the year ended March 31, 2021. The company assumes no obligation to update any
information contained herein.